John, a Student, Is Driving a Car

question 30

Multiple Choice

John, a student, is driving a car. In the context of analyzing a task switch, _____ while driving would impair his driving performance.

• A) trying to figure out a complicated math problem
• B) remembering the good score on yesterday's biology exam
• C) dreaming about a nice vacation with family
• D) remembering the face of a childhood friend

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Definitions:

Marketability Risk

The risk that an asset cannot be sold quickly in the market without impacting its price significantly.

Marketable Securities Portfolio

A collection of liquid financial instruments that can be quickly converted into cash, held by an individual or entity.

Treasury Bills

Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks, issued at a discount to face value.

Maturity Risk

The danger that an investment’s value will change due to a change in the absolute level of interest rates, typically affecting fixed-income securities as they approach maturity.